Nigerian Breweries reports 81% revenue growth to record US$728.4M in FY24
NIGERIA – Nigerian Breweries Plc has reported an 81 percent increase in revenue for the financial year ended December 31, 2024, reaching N1.1 trillion (US$728.4M) from N599.6 billion (US$397.05M) in 2023.
The company attributed this significant growth to strategic pricing initiatives, market expansion, successful innovations, and operational efficiencies.
Managing Director and CEO Hans Essaadi stated that despite macroeconomic headwinds, the company experienced a 51 percent increase in gross profit, which rose from N212.6 billion (US$140.78M) in 2023 to N320 billion (US$211.9M) in 2024.
Operating profit also grew by 59 percent to N70 billion (US$46.35M), up from N44 billion (US$29.14M), as a result of strong operational performance, cost management, and process optimization.
However, the company faced financial pressures, recording a 34 percent rise in net finance costs and a 36 percent increase in net loss.
The net loss rose from N106.3 billion (US$70.39M) in 2023 to N144.9 billion (US$95.95M) in 2024, primarily due to rising interest rates and the devaluation of the naira.
In a statement signed by Company Secretary and Legal Director Uaboi Agbebaku, Nigerian Breweries acknowledged these financial setbacks and detailed measures taken to address them.
The company implemented a business recovery plan with the support of its shareholders, including a successful Rights Issue to strengthen its financial position.
As part of its strategic expansion, Nigerian Breweries completed the acquisition of an 80% equity stake in Distell Wine and Spirit Nigeria Limited and secured full ownership of import licenses for Distell products, effective June 1, 2024.
Agbebaku noted that these initiatives had begun yielding positive results, with the company showing strong recovery in the last quarter of 2024.
During the fourth quarter, revenue surged by 89 percent, while operating profit increased by 145 percent. Additionally, net finance costs declined by 75 percent, leading to a return to profitability—the first time in two years.
Nigerian Breweries described this return to a positive net profit position as a critical milestone in its journey toward long-term financial stability.
The company also stated that proceeds from the Rights Issue had been utilized to mitigate future currency risks.
The board remains committed to sustaining the company’s improved financial position and navigating challenges in the Nigerian business environment.
In a recent board announcement, Nigerian Breweries appointed Olufunmilayo A. Akande as an Independent Non-Executive Director, effective February 20, 2025, to fill a vacancy on the board.
Meanwhile, Ifueko M. Omoigui Okauru will complete her tenure as a Non-Executive Director on February 19, 2025, after which she will step down.
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